Unlike previous Framework programs, normally advance payments can be made every year via the Coordinator to each partner based on their budget for the next period. For STREPs it may be 24 month or other determined period. The Coordinator must forward each partner his share without any deductions for handling etc. Note that it is inappropriate for partners to invoice the Coordinator for their payments as they are contractually required to be forwarded directly. There is a danger if you do issue an invoice that it will be liable to VAT, which is not a recognised allowable expense. The payment rules between the partners may be varied by the Consortium Agreement.
The pre-financing provided to the contractors remains the property of the Commission until reimbursed to the contractors. The pre-financing will be spent continuously from the moment it is transferred until the financial statement is accepted. On the other hand, the principle of co-financing also means that the contractors should draw equally from the pre-financing and from their own resources during each period.